The Pound fell significantly yesterday after worries continue Britain will leave the EU without a trade deal. Sterling fell to its lowest against the Dollar in almost a year and hit a nine-month low against the euro after a heavy sell-off as markets ramped up bets on Britain leaving the EU without an agreement with Brussels on their future relationship. Traders reported a significant increase in investors hedging against a ‘no-deal’ Brexit, an event which could send sterling into freefall and hurt the economy by raising trade barriers with the UK’s biggest export market.
Bank of England governor Mark Carney said on Friday the chances of a no-deal Brexit were "uncomfortably high". On Sunday, international trade secretary Liam Fox said there was a 60 percent chance the country could leave the European Union next March without a trade deal in place.
Whilst there was no obvious trigger for Wednesday’s big moves lower, there is a building sense of investor anxiety as the clock ticks down towards a series of EU-Britain meetings starting in September with no agreement in sight.
13:30 – USD: Producer Price Index expteced to decrease to 0.2%